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State House Dome: Lynch may be gambling buzz saw
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By TOM FAHEY
State House Bureau Chief
Sunday, Mar. 7, 2010
Gov. John Lynch said Friday he's got big concerns about how fast gambling could spread once slots get a foothold.
He noted that the number of proposed slot machine parlors has been steadily growing in bills lawmakers review. From slots at four race tracks in the first attempts more than 15 years ago, the crowd has grown to include race tracks, two casinos in the North Country and a resort casino in Hudson. New Hampshire Motor Speedway wants in on the action now, too.
"Before there was one slot machine purchased, it was basically all over New Hampshire," Lynch told the Greater Concord Chamber of Commerce. As budget troubles go through the usual cycle over the next 20 years, he said, "I worry about the proliferation of expanded gambling. And that may be something that's OK with some of you, but I think we have to think seriously about whether that's the kind of state we want, and whether that's the kind of state we want to give the next generation." Depending on the June report from a special gaming study commission, would Lynch be open to a pilot program? To him, that's like saying someone is a little bit pregnant.
"Some have tried to portray the possibility of a pilot program. It's not possible," he said.
The Chamber luncheon was the same venue where Lynch announced he will actively advocate for repeal of the LLC tax, but insisted it be part of a wholesale review of business taxation and a solution to the state's budget problems.
Worth noting, Lynch stated, "We're going to go forward without a sales or an income tax here in New Hampshire."
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The Senate Ways and Means committee voted Wednesday 7-0 to recommend repeal of the campground tax, as it's become known. In the 2010-11 budget bill, campsites were included as taxable rental space under the law that has long included meals and hotel rooms.
A double insult to the campground owners was the fact that the tax not only sucked in their business for the first time, but simultaneously went to 9 percent on receipts.
The tax change, passed the same night the LLC tax went through, was supposed to raise an extra $31 million. Collections of the tax are 10 percent below projections through the first eight months of the year.
The repeal of the campground tax is all that's left of a Republican sponsored bill, SB 474, that also sought to repeal the new, higher rate.
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Steve Arnold, spokesman for the New England Police Benevolent Association, which represents the officers, said the bill doesn't contain the money that's needed to handle the outflow of new prisoners.
"The plan is to cut costs and spend the money after we save it. What kind of plan is that?" Arnold asked. "These guys are not coming out of prison to head to jobs. They'll be at homeless shelters, cars, you name it. They have to go somewhere. They're going to go to our neighborhoods." SB 500 plans to release most non-violent offenders after they have served 120 percent of their minimum sentence, assuming good behavior. The aim is to provide gradual transitions to freedom, counseling and substance abuse treatment when appropriate, and to cut down on the current recidivism rate, which sees nearly half of all paroled inmates return to prison.
That, say Lynch and bill supporters from both parties, will save on the $30,000 per head per year cost of housing prisoners. With the reduction in prison population, the need for more prison space also will be avoided, they claim.
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NH Working would allow use of unemployment funds to cover the lost pay for workers cut back to part-time work. The aim is to keep people on the job, and to make it easier for businesses to expand with experienced workers when the economy recovers. The bill passed its initial Senate vote, but now goes through Finance review.
The hospital cost control proposal by Senate Majority Leader Maggie Hassan, D-Exeter, was dialed back a bit. The plan to set up a three-person commission to review and set hospital rates statewide now will be a panel that makes recommendations on what procedures should cost at each hospital, based on its fixed costs, percentage of care it delivers to poor people and other factors.
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There's another one, the last until fall elections, on Tuesday in the Lancaster area to replace former Democratic Rep. Scott Merrick. It pits former Rep. John Tholl, R-Whitefield, against John Roberge, D-Northumberland.
State GOP spokesman Ryan Williams pointed out last week that the party has won six of seven held since January 2009.
"We're trying to make it seven out of eight," Williams said.
During the 2005-06 legislative session, Democrats won in seven of eight special elections.
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House Assistant Republican Leader Rep. David Hess, also of Hooksett, will move into Boutin's seat on the Ways and Means Committee. He retains his seat on Local and Regulated Revenues, which has pretty much wrapped up business, he said.
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"Importing drugs from Canada makes such a great sound bite, that even though this bill accomplishes nothing, the minority recommends passing it so we can brag about it during this election year," wrote Rep. Joel Winters, D-Manchester. So, lawmakers can soothe voter anger by bragging in an election year that they voted to accomplish nothing.
The bill is headed for the dust bin. The House Commerce Committee voted 12-4 to recommend killing the bill, citing concerns about safety from misbranded or adulterated drugs that sneak into Canada via the Internet.
The majority agreed that the bill doesn't change much, since the federal government has said it will not prosecute individuals who import three months or less supplies of drugs for personal use.
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Rep. Gene Chandler, R-Bartlett, is fighting the ban that Democratic lawmakers have already declined once to change. His bill, HB 1693, would bar the Legislative Facilities Committee from putting a ban in effect, and would repeal the existing one.
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The Demers Group's annual fundraiser for the Children's Hospital at Dartmouth is actually being held on St. Patrick's Day itself this year. But after years as a breakfast event, it's become a corned beef and cabbage luncheon. The crowd at the Grappone Center usually numbers between 400 and 500, Jim Demers said. Tickets are $50.
Two regulars returning this year are emcee Scott Spradling and Senate President Sylvia Larsen, who may or may not inflict her version of an Irish brogue on attendees.
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Tom Fahey is State House bureau chief for New Hampshire Union Leader and Sunday News.
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YOUR COMMENTS
Hey Sandy from Thorton, you are spot-on with your facts and responses.
- JeffD, Salem
Sandy,
Apparently you've gotten hold of some old data;
"To date, with nine of a maximum fourteen casinos in operation, legalized gaming in the Commonwealth has created over 8,000 new living wage jobs, revenue that has provided property tax reduction in each of the past two years for all homeowners, and funds that have reinvigorated Pennsylvania’s horse racing industry." (from Pennsylvania's Gaming Control Board)
As for the bulk of their employees coming from Atlantic City, that is another erroneous post. They have RECENTLY targeted many laid-off employees from Atlantic City for table games which were just recently legalized in Pennsylvania. This estimated 4,000 - 4,500 new positions are in addition to the 8,000 already employed.
As for the "whole new bureaucracy" to alleviate gambling addiction...what is the problem with that? Senate Bill 489, just like last year's gambling bill, also calls for 1% of net revenues towards gambling addiction treatment. This is a critical program and should have already been available in this state since we have gambling of all types here.
The Bill also sets aside the following;
(1) 30% of the net machine income generated by video lottery machines shall be paid to the general fund of the state.
(2) 3% shall be paid to the municipality in which the operator licensee operates video lottery machines.
(3) 2% shall be paid to the state treasurer to be divided equally amongst each county in the state for property tax relief.
(4) 1% of the net machine income shall be divided equally amongst each of the municipalities of New Hampshire which abut a municipality in which the operator licensee operates video lottery machines.
(5) 1% shall be credited to the commissioner of the department of health and human services to support programs to treat problem gambling.
(6) 0.5% shall be credited to the division of travel and tourism development
(7) 0.5% shall be paid equally to the police standards and the fire standards for reimbursement of expenses incurred for certification training and salaries.
(8)(A) 1% shall be paid to the state treasurer and credited to the racing and charitable gaming commission
Finally, you conveniently mention the unemployment rate in Michigan, a state which was decimated by the collapse of the auto industry, joblessness, and bankruptcies. Entire neighborhoods in Detroit were purchased on auction from European investors for pennies on the dollar. You honestly want to blame gambling for that disaster? That's just plain old BS. BTW, slot machines are only legal in tribal casinos in Michigan, yet they provide jobs for 4,000.
To use the arguement that hundreds of millions of dollars to the state annually is worthless because you are convinced the government will spend more is really convoluted thinking.
- Bob Black, Hooksett
Nice try Bob Black: There is no denying that the states get revenue from gambling – My point is, that they don’t use it to REDUCE THEIR DEFICITS – they use the revenue to find new social programs to SPEND MORE on! The point is that the states with the highest deficits are almost always those with gambling casinos – curious. Most of the jobs available in Penn. (the estimate was 5K jobs not 8K) were taken by laid off casino workers from Atlantic City casinos (several thousands have been laid off from the casinos in Atlantic City, Foxwoods et.al.). Oh, and other jobs were created in Pennsylvania: in state government in the Departments of Health, Revenue and Agriculture along with the state Gaming Control Board – they now have an official week of awareness called “Problem Gambling Awareness Week” – in fact, it’s this week! It’s for gambling problem assistance and they have created a whole new bureaucracy (with new taxes to pay for it) to provide access to counseling for people being ruined emotionally and financially by gambling. How nice. We want to you gamble so give us money so we can spend more money and grow state government to counsel you for that nasty gambling addiction we helped you get.
As to jobs? Let’s just take a for instance: For instance, Michigan is the current home of 23 gambling casinos and the legislature wants to build 6 more. Now, as you may know we are in the midst of a great recession and unemployment is very high – in Michigan it is currently almost 15%! And they have 23 casinos – they also have the wonderful cities of Lansing, Dearborn, Detroit and Flint. Home of the UAW, but no more automotive industry. You’d think that they would have been able to reduce their unemployment with 23 casino’s, wouldn’t you? But here is Michigan with 15% unemployment and in the top ten of states nearly bankrupt. But it’s got 23 casino’s! If you look at the statistics from just about every source including CNN Money, for every 1 job created by a casino two to three others in the retail industry are lost. So, to say that gambling is the answer to a state’s financial problems OR that gambling is a jobs bill – are both not entirely true statements.
- Sandy, Thornton
People who go to Rockingham Park are there to gamble, period - what's the difference if they put in on a horse or in a slot machine?
- Zoot, Derry
John from Newmarket: Foxwoods is in Connecticut not Massachusetts.
- Jay Collins, Laconia
Lets take inventory; You have lost your job, your house has been foreclosed, your health insurance has been cancelled, you drive a Toyota, and gambling is going to make the quality of life deteriorate in New Hampshire?
- Carl, Rochester
Sandy in Thornton,
Ironic you speak of "cutting & pasting" since it's actually what you continue doing. My facts come from my own extensive research I've done with multiple studies and data from numerous, unbiased sources.
As I mentioned the last time you wrote of these state "budget issues"--exactly what is your point? The country is in a massive recession if you haven't heard. Slot machine revenues are often times the third largest contributor to many state's budgets, behind only income & sales taxes. If your claim is that the billions of dollars annually from gambling does NOT help provide many states with necessary revenue, then you are seriously delusional.
As for job creation, of which you conveniently dismiss...the expansion of gambling will create thousands of well-paying jobs across the state--just as Pennsylvania employs 8,000 employees due to slot machines. Perhaps you haven't heard, but New Hampshire's unemployment rate just climbed to 7% while the national rate droped slightly.
- Bob Black, Hooksett, NH
Gambling with revenue used to cut taxes is good. Gambling with revenue used to pay for more spending is bad. It's very simple.
- Glen, Manchester, NH
I don't think gambling at the Rock is a good idea. You're fooling yourself if you really think it will create a substantial amount of good jobs, and the traffic and crime it will create will offset any economic benefits. I understand that owners of the Rockingham Park need to look at other revenue options, but Salem residents will regret supporting gambling there if the bill ever passes Lynch.
- Jonathan McNeal, Salem, NH
Chandler from Rochester - Keno gambling machines are widely available through out MA. It's been restricted to establishments that also serve alcohol (Gotta keep the players common sense from kicking in) but there's talk of expanding it beyond that limitation. Also slots etc.. are available at numerous places dotting the state. Ever hear of Foxwoods?
- John, Newmarket
my tax bill is up$2000.. since moving up here..nothing has improved..this state is a big joke..always has been.. I hope they repeal this foolish gambling tax if they bring in expanded gambling.. or just shut down all gambling in the state and have a sales tax..the choice is yours idiots..
- adavids, londonderry
Aaahh, John from Newmarket: You need to get your eyes checked. You claim to see "Seedy rows of machines" in MA, implying that they are gambling machines. Did you know that slot machines are not legal in MA? Nice try at a scare tactic, though.
- Chandler, Rochester, NH
Bob Black, Hooksett: As I pointed out when you cut and pasted your little “fact sheet” last week, your facts are a little skewed. While those states may have used initial gambling revenues to offset taxes at one time, consider this from Business Week and the Center on Budget and Policy Priorities: Of the 43 states facing a financial crisis, Maine is ranked 18th with a 260M projected shortfall in 2010; (New Hampshire is 19th on the list with a 250M shortfall, by the way); Delaware 14th with a 350 million shortfall (2010); not far behind are Pennsylvania with dire warnings forecast for drastic increases in property taxes and electric rates due to deregulation; Tennessee (another gambling state); Massachusetts (16th) with a 2.6 Billion projected shortfall; West Virginia has a 120 million shortfall; only South Dakota has managed to remain close to the bottom of the list. Why, because my friends after selling gambling as the answer to the budgetary prayers the states NEVER STOPPED SPENDING. They INCREASED spending and expanded all types of welfare and entitlement programs and hired tons of unionized state employees to manage the same.
Now D'Allessandro has the gall to try and pass gambling off as a "jobs bill" which is laughable to the extreme - unless you're dying to be a (union) cafeteria worker, a chamber maid or a maintenance person, don't bet on it. All the good jobs go to the folks already employed by the casino racketeers.
- Sandy, Thornton
Its time that we welcomed a 'Rockingham Casino' to NH. Salem, NH is the perfect place; its just off Route 93 and on the MA border. This will be a boom to the local economy & a virtual supernova that bridges us to the end of the recession and brings in needed jobs. Also, future recessions will be muted due to the permanent jobs created. This 'Rockingham Casino' will bring in millions of dollars to the State. MA, ME and VT and CT residents will flock to NH pristine sea shore and southern NH.
- Alex Ploud, Concord, NH
Hey Bob Black,
You really bloviate too much. Just remember, Say no to expanded gaming at Rockingham Park!
- JeffD, Salem
I am still waiting for Jeff D. of Salem to give me a budget plan that curbs spending and puts Nh residents back to work.
Jeff doesn't like gambling and that is his choice but we need jobs and passing the gaming bill will put 3000-4000 of our residents to work in good paying jobs.
Call your state rep and tell him/her to pass this bill now.
- Fred F., Salem
It's amazing how many people still try to sell us gambling will cure the states spending problems as they ignore who and what actually got us to this point. The state will be tied in with the gambling industry and the whole thing will be unionized and that certainly seems to be working so well in all other areas of government today. What could go wrong down the road with such a plan after new government growth feeds from the trough? If we pay attention we would know the answer is higher fees and more taxation after a very short time and the gambling industry becomes too big to fail. We will still have a spending problem in the end to deal with and state agencies created to take care of those who lost more than they could afford to loose. Unless you all hate the children and don't want to take care of them when it happens.
- Patriot, poortown
NH is about a decade late in expanded gambling & continues to drag its feet. Delaware has realized over $2.5 BILLION since they adopted slot machines. Crime has not been a factor in the cities which house their racinos (actually dropped in some cases), social problems haven't befallen them, and their thoroughbred racing industry was saved. Pennsylvania just saw gambling earnings to the state at a staggering $1.22 BILLION dollars in the last fiscal year alone! Bangor, Maine residents saw their property taxes decreased directly from slot revenues. Slot machine gambling is now legal in 39 states--and its revenue is often the third largest contributor behind income and sales taxes.
It's easy to make a statement like, "Just say no to gambling" like simpletons on this forum. It's quite another to actually come up with a budget plan that works for the state. Legislators passed a pathetic excuse for a budget over the summer, hiking fees everywhere and dropping vital services. Now we're seeing the effects...an overturning of the $190 million from the medical malpractice fund, a repeal of the LLC tax increase, now the campground room & meals tax is being shelved... Can the ridiculous double-tax of 10% on gambling winnings be far behind?
Enough procrastinating...pass the damn expanded gambling bill already. Every poll has proven unequivocally that the citizens prefer it overwhelmingly to a sales or income tax. GET IT DONE!
- Bob Black, Hooksett
Hey Sam, Hey Jeff.
1) A majority of our Town wants gambling at the Rock. Please do not misstate the truth. Multiple polls over the years on this.
2) Grandmother bought property in Salem in 1925. Since that time, newcomers, politicians and yes planners have mucked the place up.
3) RE Taxes from the Rock might actually pay for a lot of the dumb ideas that are proposed for our town.
4) Don't you care about the real unemployment rate, people are hurting or are you immune to this.
5) Decades ago the parking lots were totally full at the racetrack. I'll bet a lot of neat stuff around this town was funded as a result.
- Bob, Salem
People, the gambling bill actually HAS a tax associated with it: a 39% tax on net slot machine income and net table game income. In other words, this is a 39% tax on the money lost by the casino's customers. Anti-tax fanatics can take some comfort that this tax rate has been reduced even before any bills have been passed. The proposals which died last year both applied a tax rate of 49% to "losings."
Interestingly, the Senate Finance Committee learned in passing at the hearing that slot machines are set to give back about 40% of the money put into them (the proposed 39% tax qualifying as "about 40%".) One or two representatives of the gaming industry testified the average slot machine typically takes in $300/day while paying out $120/day in prizes.
- Timothy Horrigan, Durham, NH
Say No to expanded gaming at Rockingham Park, Save Salem!
- JeffD, Salem
Want to control costs? How does privatizing the liquor commission sound now governor? Pretty good?
You can rid your state of the commission and the egomaniac enforcement department and save lots of money!
- Dave, Portsmouth
No, Bob, the majority do not agree with you on this matter. When you ask "would you like slot machines in your state or a new tax," what do you think the answer will be? We always choose the free lunch, until we figure out how much that lunch actually costs us in other ways.
- Sam, Salem
Finally, Lynch starts to take a stand on something. He's at least noticing the real goal of the gambling lobby. Budget crunches are always a challenge, but dragging the state into a money sewer is no solution. Living in the southern tier and working in MA, I've had the unfortunate benefit of seeing MA's gambling solution. Seedy rows of machines in what would otherwise have been nice establishments. Always with some poor wretches hunched over them hoping for a miracle win that will never come. All they end up doing is throwing what money they had down a hole and downing another drink in hope that something will change. Ya, That's the future I want for NH....NOT!
- John, Newmarket
His concerns are manageable - just say no. He should have concerns about the level of RE taxation. But, that doesn't seem to bother him. Must be nice to live in fantasyland.
- Leo, Canterbury
Pass a gambling bill, taxpayers are hurting. A majority of people agree with me on this matter.
- Bob, Salem
John Stephen would do well to get behind gaming.....let Lynch hang out there as usual not quite knowing what he should do.
- Jay Collins, Laconia
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